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5 Growth Stocks to Buy in May and Go Away

In This Article:

Key Points

  • So-called "Magnificent Seven" stocks Amazon, Meta Platforms, and Nvidia remain great long-term picks.

  • The Trade Desk's share price has been clobbered this year, but its prospects are bright.

  • Vertex Pharmaceuticals' impressive momentum should continue with new drugs on the market and a promising pipeline.

Nearly every investor has heard the adage, "Sell in May and go away." The premise is that stock market returns are often lower between May and October than from November to April. Historically, there has been some support for this approach (although not so much in recent years).

I have a different suggestion, though. Here are five growth stocks to buy in May and go away (i.e., hold them for the long term).

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1. Amazon

Amazon's (NASDAQ: AMZN) share price remains more than 20% below its previous high. Every time the stock has declined this much in the past, it has presented a fantastic buying opportunity. I think this trend will continue.

We could talk about Amazon's latest quarterly results or the potential impact of tariffs on its business. The more important point with Amazon, though, is its long-term prospects -- which are very bright.

The company still has plenty of room to expand its e-commerce business. Amazon Web Services leads the cloud services market and should enjoy a massive tailwind from artificial intelligence (AI) over the next decade and beyond. Amazon also continues to enter new markets, most recently launching the first of its Project Kuiper satellites that will provide high-speed internet across the world.

2. Meta Platforms

Meta Platforms (NASDAQ: META) might be the Rodney Dangerfield of the AI world. In my view, the company doesn't get the respect it deserves, but I think that could change in the not-too-distant future.

CEO Mark Zuckerberg recently revealed that Meta AI has almost 1 billion monthly active users. That number should increase now that the generative AI app is available on Apple's App Store and Alphabet's Google Play Store. The company is also making solid progress with its smart glasses development, an area that I predict will pay off handsomely over the next few years.

In the meantime, Meta remains a cash cow. Its apps reach 3.43 billion active users every day -- nearly 42% of the entire world population. That's an audience that will keep attracting advertisers and keep money flowing into Meta's coffers.